Don't bet on regeneration from supercasino, say Lords

Britain's first super-casino will fail to fulfil Labour's promises of boosting the local economy and creating jobs, says a report.

The Government vowed that the development in a run-down area of east Manchester would be a weapon against local unemployment and poverty.

But a powerful House of Lords committee said there was "no guarantee" that building the casino would deliver the regeneration benefits pledged.

The report confirms that the location will simply lure the poor and fuel problem gambling.

It flies in the face of claims by Culture Secretary Tessa Jowell that the Las Vegas-style casino will benefit the area and improve lives.

Peers demanded a rethink of the Casino Advisory Panel's decision in January to choose Manchester.

Blackpool MPs accused the panel of ignoring their seaside resort's need for regeneration.

The report was published by the Lords' Merits of Statutory Instruments Committee, which scrutinises decisions made by the Government beyond ordinary legislation.

The committee highlighted differences between the Government's key policy that the site of the casino should provide the 'best possible test of social impact' and the casino panel's conclusion that it would be difficult to trace the benefits in a large city like Manchester.

They said that while the Gambling Act stressed the importance of minimising the harm from gambling caused by the super-casinos, the evidence from the panel chairman, Professor Stephen Crow, made it clear that this was not a high priority in the selection criteria.

Manchester's city council has also suggested it could choose a different site - making the selection process a farce.

The report said: "There is no guarantee the super-casino will provide traceable regeneration.

"Proposals to allow the licensing of a new regional casino in Manchester may fail in its objective to provide an accurate assessment of the social impact of that casino."

Peers tabled a motion in the Lords calling for the casino order to be amended. LibDem peer Lord Clement-Jones said: 'The process and basis for choosing the location of these casinos would now appear to be deeply flawed.

"I have tabled a motion calling for this whole matter to be given proper analysis by the Joint Scrutiny Committee. Only then can confidence in these proposals be restored."

Sports Minister Richard Caborn said: "I am confident that the independent Casino Advisory Panel's recommendations, which are based on 16 months of careful, objective analysis of the evidence, will provide a good test of social impact. This was the panel's key objective and they met it.

"These casinos will be closely monitored and if there is evidence they are causing harm, the Commission can and will act to deal with that."